Canada's VersaBank Lands Two Prospects to Use Its Crypto Vault

VersaBank, a digital-only Canadian bank, is close to landing two users for its cryptocurrency vault service.

The bank announced on Monday that it had signed two memorandums of understanding†- one with a cryptocurrency exchange and the other with a "cryptocurrency-based fund."

Versa said in a statement that the MOUs were intended to "facilitate discussions regarding VersaVault providing custodial services and piloting its blockchain based safety deposit box." It did not identify either business.

David Taylor, the bank's president and CEO, explained:

"In connection with developing a product that meets with the seamless services that both exchanges and funds require, we have signed MOUs with one of each, which will provide us with the necessary feedback ... so that when we launch globally to the other exchanges, funds and numerous digital asset holders, we will have a product that meets their specific needs."

The bank introduced its digital property storage service, dubbed VersaVault, in January, and claimed at the time that it would provide "absolute privacy" and security for digital valuables, namely cryptocurrencies.

VersaBank plans to offer the service globally, and told†Bloomberg in January that it expected to roll out VersaVault in June.

"Bitcoin and other cryptocurrencies are quickly gaining popularity and holders have already experienced their valuable holdings vanish from the less secure 'digital storage' options," the bank noted in its statement. It continued:

"Banks have always been known as the safest place to store physical valuables and it is the aim of VersaVault to provide the safest place to secure your digital valuables."

VersaVault is the London, Ontario-based bank's first foray into the crypto industry. The bank has an "electronic branchless model," and specializes primarily in deposits and financing.